There are primarily three types of Network Marketing model that can be used to distributes goods and services while rewarding both the manufacturer and the distributors. These include the following;
In this model, the primary distributor will do direct sells only, without recruiting additional distributors, but will be rewarded for the direct sells. The primary distributors seek to continuously get a buyer and thus all effort are concentrated on a single person.
The primary distributor signs up for the company’s affiliate to promote the company products or services. Example of a single-Tier Network Marking model is the Google AdSense, where their affiliate model operates on a Pay-per-click (PPC) or Pay-per-lead (PPL) basis. The services here is to drive traffic to the affiliate website.
In a two-tier Network Marketing model, the distributor is paid for direct traffic or sales that he refers to the merchant’s site as well as any traffic or sales referred by other affiliates brought in by your endorsement or testimonies. Examples of a two-tier Network Marketing model are found in companies like Fiverr, ShareAsale and TemplateMonster
In a Multi-Level Network Marketing model, the distribution channels involve more than two level. This is the most popular types of Network Marketing currently being employ in the world today. This form of Network Marketing is driven by Demand for the products as the distributors focus on the key features and benefits of the product.
To succeed also in this marketing model, the distributor must make effective use of his or her social capital
By Social Capital, this entails the distributors current social relationship such as his friends, family members, extended family members, colleagues at the place or work or career and many other social factors that make the distributor a social being. Using his social capital to increase the demand for the products is another silent and effective tools for closing a deal.